Global IT market growth to decline

12 Feb 200817 Views

Macroeconomic conditions have caused leading IT analyst IDC to revise its growth forecast for the global IT industry, with market growth now projected at 5pc, which is down from last year’s pace of 6pc.

Global IT spending is now projected to reach US$1.38tr this year, up from just over US$1.3tr last year.

In the US, growth is expected to weaken to 4pc in 2008, compared with 6pc in 2007.

IDC says the general reduction in anticipated growth in the US economy has translated into forecast reductions in most other IT market sectors.

Historical correlations and recent IT buyer surveys, IDC says, confirm the view that market conditions will weaken in the months ahead.

“While there is still debate over the severity and length of a US economic slowdown, we do know the IT market will not escape unscathed from any significant downturn,” said Stephen Minton, vice-president of worldwide IT markets at IDC.

“IT vendor performance will likely be buoyed to some extent by growth in emerging geographies, and perhaps by a weakening US dollar, but we have also detected some signs of softer market conditions in Europe and Japan.

“Any recession in the US, meanwhile, would have repercussions across most major economies and IT markets,” Minton said.

IT spending in western Europe is expected to grow by just 4pc this year, down from last year’s 5pc.